Bhutan Moves Its National ID System Onto the Ethereum Blockchain

Jimmy Aki
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The Kingdom of Bhutan has completed the migration of its National Digital Identity (NDI) system from the Polygon network to Ethereum. The transition will enable about 800,000 citizens to manage their digital identities and access government services. All personal data will be managed without relying on centralized databases.

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On October 13, Ethereum Foundation President Aya Miyaguchi confirmed in an X post that the South Asian nation had completed its integration with the Ethereum mainnet. She disclosed that the full migration of all resident identity data would be concluded by the first quarter of 2026.

The launch ceremony at Thimphu was attended by Miyaguchi and Ethereum co-founder and social entrepreneur Vitalik Buterin. Other high-profile officials included Bhutan’s Prime Minister Tshering Tobgay and Crown Prince Jigme Namgyel Wangchuk.

Integrating Ethereum into a government’s national ID system is not just a technical move. It represents a new vision for digital trust.

Traditional identity systems rely on central databases managed by the government or private firms. This centralization puts the systems at risk of data breaches, unauthorized access, and identity theft. Once personal information is compromised, it is effectively irrecoverable.

In contrast, a blockchain-based system provides a transparent and immutable structure that ensures identity data remains secure, even when it can be verified across systems.

Bhutan’s transition to Ethereum came on the heels of Buterin urging the world to embrace “full-stack openness.” The Ethereum co-founder asserts that technology should remain open and transparent as it becomes an integral part of daily life.

https://twitter.com/VitalikButerin/status/1970672306520543721

Other nations have also begun exploring similar blockchain applications.

Brazil initiated a blockchain-powered identity program in September 2023, beginning with a pilot program in selected states.

Similarly, Vietnam introduced NDAChain in July 2025. This is a national blockchain platform designed to secure data, prevent cyberattacks, and improve integration across its digital economy.

Bhutan Now Ranks Among the Top 5 Bitcoin-Holding Nations

While Bhutan has adopted Ethereum for digital identity, the country’s accumulation of Bitcoin has drawn equal attention.

Bhutan built its Bitcoin reserves through mining activities powered by its hydropower resources. This approach keeps energy costs low and emissions near zero.

Data from BitBo’s Bitcoin Treasuries shows that Bhutan currently holds 11,286 BTC, valued at around $1.31 billion.

The holdings rank Bhutan fifth on the list of countries with Bitcoin treasuries.

Sweden recently joined the conversation. On October 1, Swedish lawmakers Dennis Dioukarev and David Perez introduced a motion to explore creating a national Bitcoin reserve.

If approved, Sweden would be among the first European countries to treat Bitcoin as a state-level asset, following Bhutan’s example.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.